What is Input-Output Model?
A definition of Input-Output Model
“An input-output model is a quantitative economic technique that represents the interdependencies between different sectors of a national economy or different regional economies.”

Business Glossary > What is Input-Output Model?
Examples of Input-Output Model in a Sentence:
An input-output model can help analyze economic impacts across sectors.
Economists use the input-output model to forecast systemic changes.
Understanding the input-output model helps in regional economic planning.
Why is Input-Output Model Important in Business?
The input-output model is crucial for understanding how changes in one sector of the economy can impact others and the economy as a whole. It assists governments and businesses in making data-driven decisions on economic policies and investments.
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Associated Terms
Here are some associated business terms and synonyms for “Input-Output Model”:
- Economic Model
- Interindustry Model
- I-O Model
Example of an Input-Output Model in Use
General Motors utilizes input-output models to understand how a recession in one sector may affect their supply chain and operations, enabling strategic adjustments and minimizing potential negative impacts.
Final Notes on Input-Output Model
When utilizing an input-output model, analysts should consider the intersectoral dependencies and potential feedback loops that can amplify the effects of economic shocks.
This has been a definition of Input-Output Model meaning.
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